Economy

China's private equity to take 'different path'

(Agencies)
Updated: 2010-12-29 09:21

China's private equity industry is "unique" because it's dominated by the State and will follow a "different path" from overseas peers,?Bloomberg News reported Tuesday, citing Xie Ping, vice-president at the nation's $300 billion sovereign wealth fund.

Entities that manage private equity in China and those that invest in such funds are primarily State-owned institutions, China Investment Corp's Xie said in Beijing.

By having government backing, China's private equity funds can increase the value of Chinese companies in which they invest,?the report cited?Xie as saying. This is an aspect of the Chinese market that is different from other countries, he added.

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The ability to invest directly in private equity is currently limited to a few large State-owned institutions such as China's national pension fund,?the report said.